WGU C237 TAXATION 1 TEST PAPER 2025/2026
QUESTIONS AND ANSWERS GUARANTEE A+
✔✔C corporation tax return due date - ✔✔Generally 15Th day of the 4Th month
following end of tax year (exception for C corp. with June 30 year-end-due 15Th day of
3rd month)
✔✔Partnerships and s corporations - ✔✔15th day of 3rd month following end of tax
year
✔✔Extention to file - ✔✔If requested by taxpayer get an automated 6 moths extension
to file return *no extion on amount owed
✔✔Statute of limitation - ✔✔The period of time a taxpayer can file an amended tax
return or the IRS can assess a tax deficiency for a specific tax year
✔✔IRS Audit - ✔✔Is a review of an ORG. or individual accounts and finically
information to ensure information is reported correctly according to the tax laws and to
verify the reported amount of tax is correct
✔✔Correspondence examination - ✔✔an IRS audit conducted by mail and generally
limited to one or two items on the taxpayer's return. Among the three types of audits,
correspondence audits are generally the most common, the most narrow in scope, and
least complex. The IRS typically requests supporting documentation for one or more
items on the taxpayer's return (e.g., documentation of charitable contributions
deducted).
✔✔Office examinations - ✔✔the second most common audit. As the name suggests,
the IRS conducts these audits at the local IRS office. These audits are typically broader
in scope and more complex than correspondence examinations. Small businesses,
taxpayers operating sole proprietorships, and middle- to high-income individual
taxpayers are more likely, if audited, to have office examinations.
✔✔field examinations - ✔✔the least common audit. The IRS conducts these audits at
the taxpayer's place of business or the location where the taxpayer's books, records,
and source documents are maintained. Field examinations are generally the broadest in
scope and most complex of the three audit types. They can last many months to
multiple years and generally are limited to business returns and the most complex
individual returns.
✔✔30 Day letter - ✔✔the IRS letter received after an audit that instructs the taxpayer
that he or she has 30 days to either (1) request a conference with an appeals officer or
(2) agree to the proposed adjustment.
, ✔✔90 day letter - ✔✔A statutory notice of deficiency giving the taxpayer 90 days to
resolve the matter or file a petition with the United States Tax Court.
✔✔U.S. Tax court - ✔✔a national court that only hears tax cases and where the judges
are tax experts. The U.S. Tax Court is the only court that allows tax cases to be heard
before the taxpayer pays the disputed liability and the only court with a small claims
division (hearing claims involving disputed liabilities of $50,000 or less).
✔✔U.S. District court - ✔✔Local court; Possible jury trial; Generalists; Pay tax first
✔✔U.S. court of federal claims - ✔✔National court; Generalists; Pay tax first; Appeals to
U.S. Circuit Court of Appeals for the Federal Circuit
✔✔Primary Tax Law Sources - ✔✔Legislative branch-congress -internal Revenue code
(IRC) (title 26 USC)
Judicial branch- rulings by the federal courts- court decisions
Executive/ admin- treasury regulations and IRS pronouncements
✔✔Secondary unofficial tax authorities - ✔✔Tax journals
Guidebooks (CHH master tax guide or RIA federal tax handbook)
✔✔Revenue rulings - ✔✔second in administrative authoritative weight after regulations.
Revenue rulings address the specific application of the Code and regulations to a
specific factual situation. Revenue rulings have the same authoritative weight as
revenue procedures.
✔✔Revenue Procedures - ✔✔Explain in great detail IRS practice and procedures in
administering tax law
✔✔Letter rulings - ✔✔Less authoritative but more specific than revenue rulings and
regulations (e.g., applied to a specific taxpayer)
✔✔Open facts - ✔✔have not yet occurred
✔✔Closed facts - ✔✔have already occurred
✔✔Technical Advice Memorandum - ✔✔ruling issued by the IRS national office,
requested by an IRS agent, and generally for a completed transaction
✔✔Circular 230 - ✔✔Issued by IRS-governs tax practice before the IRS
✔✔Entity - ✔✔An ORG created by an individual(S) to conduct business engage in a
trade or partake in similar activities
QUESTIONS AND ANSWERS GUARANTEE A+
✔✔C corporation tax return due date - ✔✔Generally 15Th day of the 4Th month
following end of tax year (exception for C corp. with June 30 year-end-due 15Th day of
3rd month)
✔✔Partnerships and s corporations - ✔✔15th day of 3rd month following end of tax
year
✔✔Extention to file - ✔✔If requested by taxpayer get an automated 6 moths extension
to file return *no extion on amount owed
✔✔Statute of limitation - ✔✔The period of time a taxpayer can file an amended tax
return or the IRS can assess a tax deficiency for a specific tax year
✔✔IRS Audit - ✔✔Is a review of an ORG. or individual accounts and finically
information to ensure information is reported correctly according to the tax laws and to
verify the reported amount of tax is correct
✔✔Correspondence examination - ✔✔an IRS audit conducted by mail and generally
limited to one or two items on the taxpayer's return. Among the three types of audits,
correspondence audits are generally the most common, the most narrow in scope, and
least complex. The IRS typically requests supporting documentation for one or more
items on the taxpayer's return (e.g., documentation of charitable contributions
deducted).
✔✔Office examinations - ✔✔the second most common audit. As the name suggests,
the IRS conducts these audits at the local IRS office. These audits are typically broader
in scope and more complex than correspondence examinations. Small businesses,
taxpayers operating sole proprietorships, and middle- to high-income individual
taxpayers are more likely, if audited, to have office examinations.
✔✔field examinations - ✔✔the least common audit. The IRS conducts these audits at
the taxpayer's place of business or the location where the taxpayer's books, records,
and source documents are maintained. Field examinations are generally the broadest in
scope and most complex of the three audit types. They can last many months to
multiple years and generally are limited to business returns and the most complex
individual returns.
✔✔30 Day letter - ✔✔the IRS letter received after an audit that instructs the taxpayer
that he or she has 30 days to either (1) request a conference with an appeals officer or
(2) agree to the proposed adjustment.
, ✔✔90 day letter - ✔✔A statutory notice of deficiency giving the taxpayer 90 days to
resolve the matter or file a petition with the United States Tax Court.
✔✔U.S. Tax court - ✔✔a national court that only hears tax cases and where the judges
are tax experts. The U.S. Tax Court is the only court that allows tax cases to be heard
before the taxpayer pays the disputed liability and the only court with a small claims
division (hearing claims involving disputed liabilities of $50,000 or less).
✔✔U.S. District court - ✔✔Local court; Possible jury trial; Generalists; Pay tax first
✔✔U.S. court of federal claims - ✔✔National court; Generalists; Pay tax first; Appeals to
U.S. Circuit Court of Appeals for the Federal Circuit
✔✔Primary Tax Law Sources - ✔✔Legislative branch-congress -internal Revenue code
(IRC) (title 26 USC)
Judicial branch- rulings by the federal courts- court decisions
Executive/ admin- treasury regulations and IRS pronouncements
✔✔Secondary unofficial tax authorities - ✔✔Tax journals
Guidebooks (CHH master tax guide or RIA federal tax handbook)
✔✔Revenue rulings - ✔✔second in administrative authoritative weight after regulations.
Revenue rulings address the specific application of the Code and regulations to a
specific factual situation. Revenue rulings have the same authoritative weight as
revenue procedures.
✔✔Revenue Procedures - ✔✔Explain in great detail IRS practice and procedures in
administering tax law
✔✔Letter rulings - ✔✔Less authoritative but more specific than revenue rulings and
regulations (e.g., applied to a specific taxpayer)
✔✔Open facts - ✔✔have not yet occurred
✔✔Closed facts - ✔✔have already occurred
✔✔Technical Advice Memorandum - ✔✔ruling issued by the IRS national office,
requested by an IRS agent, and generally for a completed transaction
✔✔Circular 230 - ✔✔Issued by IRS-governs tax practice before the IRS
✔✔Entity - ✔✔An ORG created by an individual(S) to conduct business engage in a
trade or partake in similar activities
